Nike's (NKE) New 'Flyknit' Shoes: Good for Runners, Great for Investors
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Nike (NYSE: NKE) is teasing us again and shareholders should be loving it.
Although the item will be available for purchase shortly, Nike recently introduced its new line of running shoes, named "Flyknit." The shoes will be featured during the 2012 Summer Olympics, much like Nike's offerings during the 2010 World Cup, and should be on the market in July for about $150 per pair.
Clearly, Nike keeps responding to runners' concerns that socks are too uncomfortable and don't provide the right "feel" when running. Coming in at about 5.6-ounces (35 percent of a pound), the shoes utilize a synthetic yarn which is woven by a knitting machine to provide the shoes structure. The process is efficient enough, Bloomberg reports, that Nike might be able to move production out of Asia and one day be able to make customized shoes for an individual's specifications.
Lightweight shoes are also making a big splash in the U.S., with Bloomberg saying many attribute the shoes to lowering injury rates. Data also shows that the lightweight category accounted for 30 percent of the $6.5 billion running shoe market last year, driving the 14 percent growth realized industry wide.
Nike has been tinkering in the lightweight shoe category for some years now, at least back to the 1980s. However, the offerings have generally been flimsy and unsupportive, leaving many to opt for traditional shoes. Nike then introduced its Nike Free shoe in 2004 as sort of a "niche" product...well, that shoe has grown into Nike's top running shoe seller.
The best part is the technology. Bloomberg says Nike is using "micro-level precision engineering," whereby little changes can be made virtually on the fly to account for new demands. Should a toe need more stretch, then a few button clicks later will alter the design to add more Lycra-infused thread. Need more heel support? Click-click-click, the weave changes and new heel support is added.
Shares of Nike's last bid was about one penny higher in early trading.
Although the item will be available for purchase shortly, Nike recently introduced its new line of running shoes, named "Flyknit." The shoes will be featured during the 2012 Summer Olympics, much like Nike's offerings during the 2010 World Cup, and should be on the market in July for about $150 per pair.
Clearly, Nike keeps responding to runners' concerns that socks are too uncomfortable and don't provide the right "feel" when running. Coming in at about 5.6-ounces (35 percent of a pound), the shoes utilize a synthetic yarn which is woven by a knitting machine to provide the shoes structure. The process is efficient enough, Bloomberg reports, that Nike might be able to move production out of Asia and one day be able to make customized shoes for an individual's specifications.
Lightweight shoes are also making a big splash in the U.S., with Bloomberg saying many attribute the shoes to lowering injury rates. Data also shows that the lightweight category accounted for 30 percent of the $6.5 billion running shoe market last year, driving the 14 percent growth realized industry wide.
Nike has been tinkering in the lightweight shoe category for some years now, at least back to the 1980s. However, the offerings have generally been flimsy and unsupportive, leaving many to opt for traditional shoes. Nike then introduced its Nike Free shoe in 2004 as sort of a "niche" product...well, that shoe has grown into Nike's top running shoe seller.
The best part is the technology. Bloomberg says Nike is using "micro-level precision engineering," whereby little changes can be made virtually on the fly to account for new demands. Should a toe need more stretch, then a few button clicks later will alter the design to add more Lycra-infused thread. Need more heel support? Click-click-click, the weave changes and new heel support is added.
Shares of Nike's last bid was about one penny higher in early trading.
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